Text: HF02529                           Text: HF02531
Text: HF02500 - HF02599                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

House File 2530

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 421.1, unnumbered paragraph 8, Code
  1  2 1997, is amended to read as follows:
  1  3    The state board shall hold at least six regular meetings
  1  4 each year, the first of which shall be on the second secular
  1  5 day of July meet as deemed necessary by the chairperson.
  1  6 Special meetings of the state board may be called by the
  1  7 chairperson on five days' notice given to each member.  All
  1  8 meetings shall be held at the office of the tax department
  1  9 unless a different place within the state is designated by the
  1 10 state board or in the notice of the meeting.
  1 11    Sec. 2.  Section 421.16, Code Supplement 1997, is amended
  1 12 to read as follows:
  1 13    421.16  EXPENSES.
  1 14    The director, deputy directors, and department employees
  1 15 are entitled to receive from the state their actual necessary
  1 16 expenses while traveling on the business of the department.
  1 17 The expenditures shall be sworn to by the party who incurred
  1 18 the expense, and approved and allowed by the director.
  1 19 However, such expenses shall not be allowed residents of Polk
  1 20 county while in the city of Des Moines or traveling between
  1 21 their homes and the city of Des Moines.
  1 22    Sec. 3.  Section 421.18, Code 1997, is amended to read as
  1 23 follows:
  1 24    421.18  DUTIES OF PUBLIC OFFICERS AND EMPLOYEES.
  1 25    It shall be the duty of all public officers and employees
  1 26 of the state and of all municipalities local governments to
  1 27 give to the director of revenue and finance information in
  1 28 their possession relating to taxation when required by the
  1 29 director, and to co-operate with and aid the director's
  1 30 efforts to secure a fair, equitable, and just enforcement of
  1 31 the taxation and revenue laws.
  1 32    Sec. 4.  Section 421.40, unnumbered paragraph 3, Code 1997,
  1 33 is amended to read as follows:
  1 34    The departments, the general assembly, and the courts shall
  1 35 pay their claims in a timely manner.  If a claim for services,
  2  1 supplies, materials, or a contract which is payable from the
  2  2 state treasury remains unpaid after sixty days following the
  2  3 receipt of the claim or the satisfactory delivery, furnishing,
  2  4 or performance of the services, supplies, materials, or
  2  5 contract, whichever date is later, the state shall pay
  2  6 interest at the rate of one percent per month on the unpaid
  2  7 amount of the claim.  This paragraph does not apply to claims
  2  8 against the state under chapters 25 and 669 or to claims paid
  2  9 by federal funds.  The interest shall be charged to the
  2 10 appropriation or fund to which the claim is certified.
  2 11 Departments may enter into contracts for goods or services on
  2 12 payment terms of less than sixty days, and pay interest on the
  2 13 unpaid amount of any claim, if the state may obtain a
  2 14 financial benefit or incentive which would not otherwise be
  2 15 available from the vendor.  The department, in consultation
  2 16 with the department of general services and other affected
  2 17 agencies, shall develop policies to promote consistency and
  2 18 fiscal responsibility with respect to payment terms authorized
  2 19 under this paragraph.  The director of the department of
  2 20 revenue and finance shall adopt rules under chapter 17A
  2 21 relating to the administration of this paragraph.
  2 22    Sec. 5.  Section 422.5, subsections 3 and 11, Code
  2 23 Supplement 1997, are amended by striking the subsections.
  2 24    Sec. 6.  Section 422.13, subsection 5, Code 1997, is
  2 25 amended to read as follows:
  2 26    5.  Notwithstanding subsections 1 through 4 and sections
  2 27 422.15 and 422.36, a partnership, a limited liability company
  2 28 whose members are taxed on the company's income under
  2 29 provisions of the Internal Revenue Code, trust, or corporation
  2 30 whose stockholders are taxed on the corporation's income under
  2 31 the provisions of the Internal Revenue Code is entitled to
  2 32 request permission from the director may, not later than the
  2 33 due date for filing its return for the taxable year, including
  2 34 any extension thereof, elect to file a composite return for
  2 35 the nonresident partners, members, beneficiaries, or
  3  1 shareholders.  The director may grant permission to file or
  3  2 require that a composite return be filed under the conditions
  3  3 deemed appropriate by the director.  A partnership, limited
  3  4 liability company, trust, or corporation filing a composite
  3  5 return is liable for tax required to be shown due on the
  3  6 return.  All powers of the director and requirements of the
  3  7 director apply to returns filed under this subsection
  3  8 including, but not limited to, the provisions of this division
  3  9 and division VI of this chapter.
  3 10    Sec. 7.  Section 422.16, subsection 2, unnumbered paragraph
  3 11 2, Code 1997, is amended to read as follows:
  3 12    Every withholding agent on or before the end of the second
  3 13 month following the close of the calendar year in which the
  3 14 withholding occurs shall make an annual reporting of taxes
  3 15 withheld and other information prescribed by the director and
  3 16 send to the department copies of wage and tax statements with
  3 17 the return.  At the discretion of the director, the
  3 18 withholding agent shall not be required to send wage
  3 19 statements and tax statements with the annual reporting return
  3 20 form if the information is available from the Internal Revenue
  3 21 Service or other state or federal agencies.
  3 22    Sec. 8.  Section 422.23, unnumbered paragraph 2, Code 1997,
  3 23 is amended by striking the unnumbered paragraph.
  3 24    Sec. 9.  Section 422.25, subsection 1, paragraph b, Code
  3 25 1997, is amended to read as follows:
  3 26    b.  The period for examination and determination of the
  3 27 correct amount of tax is unlimited in the case of a false or
  3 28 fraudulent return made with the intent to evade tax or in the
  3 29 case of a failure to file a return.  In lieu of the period of
  3 30 limitation for any prior year for which an overpayment of tax
  3 31 or an elimination or reduction of an underpayment of tax due
  3 32 for that prior year results from the carryback to that prior
  3 33 year of a net operating loss or net capital loss, the period
  3 34 is the period of limitation for the taxable year of the net
  3 35 operating loss or net capital loss which results in the
  4  1 carryback.  If the tax found due is greater than the amount
  4  2 paid, the department shall compute the amount due, together
  4  3 with interest and penalties as provided in subsection 2, and
  4  4 shall mail a notice of assessment to the taxpayer and, if
  4  5 applicable, to the taxpayer's authorized representative of the
  4  6 total, which shall be computed as a sum certain if paid on or
  4  7 before the last day of the month in which the notice is
  4  8 postmarked dated, or on or before the last day of the
  4  9 following month if the notice is postmarked dated after the
  4 10 twentieth day of any month.  The notice shall also inform the
  4 11 taxpayer of the additional interest and penalty which will be
  4 12 added to the total due if not paid on or before the last day
  4 13 of the applicable month.
  4 14    Sec. 10.  Section 422.25, subsection 3, Code 1997, is
  4 15 amended to read as follows:
  4 16    3.  If the amount of the tax as determined by the
  4 17 department is less than the amount paid, the excess shall be
  4 18 refunded with interest, the interest to begin to accrue on the
  4 19 first day of the second calendar month following the date of
  4 20 payment or the date the return was due to be filed, or the
  4 21 extended due date by which the return was due to be filed if
  4 22 ninety percent of the tax was paid by the original due date,
  4 23 or was filed, whichever is the latest, at the rate in effect
  4 24 under section 421.7 counting each fraction of a month as an
  4 25 entire month under the rules prescribed by the director.  If
  4 26 an overpayment of tax results from a net operating loss or net
  4 27 capital loss which is carried back to a prior year, the
  4 28 overpayment, for purposes of computing interest on refunds,
  4 29 shall be considered as having been made on the date a claim
  4 30 for refund or amended return carrying back the net operating
  4 31 loss or net capital loss is filed with the department or on
  4 32 the first day of the second calendar month following the date
  4 33 of the actual payment of the tax, whichever is later.
  4 34 However, when the net operating loss or net capital loss
  4 35 carryback to a prior year eliminates or reduces an
  5  1 underpayment of tax due for an earlier year, the full amount
  5  2 of the underpayment of tax shall bear interest at the rate in
  5  3 effect under section 421.7 for each month counting each
  5  4 fraction of a month as an entire month from the due date of
  5  5 the tax for the earlier year to the last day of the taxable
  5  6 year in which the net operating loss or net capital loss
  5  7 occurred.
  5  8    Sec. 11.  Section 422.33, subsection 1, unnumbered
  5  9 paragraph 1, Code Supplement 1997, is amended to read as
  5 10 follows:
  5 11    A tax is imposed annually upon each corporation organized
  5 12 under the laws of this state, and upon each foreign
  5 13 corporation doing business in this state, or deriving income
  5 14 from sources within this state, in an amount computed by
  5 15 applying the following rates of taxation to the net income
  5 16 received by the corporation during the income year:
  5 17    Sec. 12.  Section 422.33, subsection 2, unnumbered
  5 18 paragraph 1, Code Supplement 1997, is amended to read as
  5 19 follows:
  5 20    If the trade or business of the corporation is carried on
  5 21 entirely within the state, the tax shall be imposed on the
  5 22 entire net income, but if the trade or business is carried on
  5 23 partly within and partly without the state or if income is
  5 24 derived from sources partly within and partly without the
  5 25 state, or if income is derived from trade or business and
  5 26 sources, all of which are not entirely in the state, the tax
  5 27 shall be imposed only on the portion of the net income
  5 28 reasonably attributable to the trade or business or sources
  5 29 within the state, with the net income attributable to the
  5 30 state to be determined as follows:
  5 31    Sec. 13.  Section 422.42, subsection 6, Code Supplement
  5 32 1997, is amended to read as follows:
  5 33    6.  "Gross taxable services" means the total amount
  5 34 received in money, credits, property, or other consideration,
  5 35 valued in money, from services rendered, furnished, or
  6  1 performed in this state except where such service is performed
  6  2 on tangible personal property delivered into interstate
  6  3 commerce or is used in processing of tangible personal
  6  4 property for use in taxable retail sales or services and
  6  5 embraced within the provisions of this division.  However, the
  6  6 taxpayer may take credit in the taxpayer's report of gross
  6  7 taxable services for an amount equal to the value of services
  6  8 rendered, furnished, or performed when the full value of such
  6  9 the services thereof is refunded either in cash or by credit.
  6 10 Taxes paid on gross taxable services represented by accounts
  6 11 found to be worthless and actually charged off for income tax
  6 12 purposes may be credited upon a subsequent payment of the tax
  6 13 due hereunder, but if any such accounts are thereafter
  6 14 collected by the taxpayer, a tax shall be paid upon the
  6 15 amounts so collected.
  6 16    Sec. 14.  Section 422.42, subsection 18, unnumbered
  6 17 paragraph 1, Code Supplement 1997, is amended to read as
  6 18 follows:
  6 19    "Services" means all acts or services rendered, furnished,
  6 20 or performed, other than services performed on tangible
  6 21 personal property delivered into interstate commerce, or
  6 22 services used in processing of tangible personal property for
  6 23 use in taxable retail sales or services, for an "employer" as
  6 24 defined in section 422.4, subsection 3, for a valuable
  6 25 consideration by any person engaged in any business or
  6 26 occupation specifically enumerated in this division.  The tax
  6 27 shall be due and collectible when the service is rendered,
  6 28 furnished, or performed for the ultimate user thereof of the
  6 29 service.
  6 30    Sec. 15.  Section 422.44, unnumbered paragraph 2, Code
  6 31 1997, is amended by striking the unnumbered paragraph.
  6 32    Sec. 16.  Section 422.45, subsection 7, paragraph b,
  6 33 unnumbered paragraph 1, Code Supplement 1997, is amended to
  6 34 read as follows:
  6 35    Such governmental unit, educational institution, or
  7  1 nonprofit private museum shall, not more than six months one
  7  2 year after the final settlement has been made, make
  7  3 application to the department for any refund of the amount of
  7  4 such the sales or use tax which shall have been paid upon any
  7  5 goods, wares or merchandise, or services rendered, furnished,
  7  6 or performed, such the application to be made in the manner
  7  7 and upon forms to be provided by the department, and the
  7  8 department shall forthwith audit such the claim and, if
  7  9 approved, issue a warrant to such the governmental unit,
  7 10 educational institution, or nonprofit private museum in the
  7 11 amount of such the sales or use tax which has been paid to the
  7 12 state of Iowa under such the contract.
  7 13    Sec. 17.  Section 422.45, subsection 46, Code Supplement
  7 14 1997, is amended to read as follows:
  7 15    46.  The gross receipts from the sale of property or of
  7 16 services performed on property which the seller retailer
  7 17 transfers to a carrier for shipment to a point outside of
  7 18 Iowa, places in the United States mail or parcel post directed
  7 19 to a point outside of Iowa, or transports to a point outside
  7 20 of Iowa by means of the seller's retailer's own vehicles, and
  7 21 which is not thereafter returned to a point within Iowa,
  7 22 except solely in the course of interstate commerce or
  7 23 transportation.  This exemption shall not apply if the
  7 24 purchaser, consumer, or their agent, other than a carrier,
  7 25 takes physical possession of the property in Iowa.
  7 26    Sec. 18.  Section 422.47, subsection 3, paragraphs a and b,
  7 27 Code Supplement 1997, are amended to read as follows:
  7 28    a.  The department shall issue or the seller may separately
  7 29 provide exemption certificates in the form prescribed by the
  7 30 director to assist retailers in properly accounting for
  7 31 nontaxable sales of tangible personal property or services to
  7 32 purchasers for purposes of resale or for processing, except
  7 33 fuel consumed in processing a nontaxable purpose.  The
  7 34 department shall also allow the use of exemption certificates
  7 35 for those circumstances in which a sale is taxable but the
  8  1 seller is not obligated to collect tax from the buyer.
  8  2    b.  The sales tax liability for all sales of tangible
  8  3 personal property and all sales of services is upon the seller
  8  4 and the purchaser unless the seller takes in good faith from
  8  5 the purchaser a valid exemption certificate stating under
  8  6 penalties for perjury that the purchase is for resale or for
  8  7 processing a nontaxable purpose and is not a retail sale as
  8  8 defined in section 422.42, subsection 14, or the seller is not
  8  9 obligated to collect tax due, or unless the seller takes a
  8 10 fuel exemption certificate pursuant to subsection 4.  If the
  8 11 tangible personal property or services are purchased tax free
  8 12 pursuant to a valid exemption certificate which is taken in
  8 13 good faith by the seller, and the tangible personal property
  8 14 or services are used or disposed of by the purchaser in a
  8 15 nonexempt manner, the purchaser is solely liable for the taxes
  8 16 and shall remit the taxes directly to the department and
  8 17 sections 422.50, 422.51, 422.52, 422.54, 422.55, 422.56,
  8 18 422.57, 422.58, and 422.59 shall apply to the purchaser.
  8 19    Sec. 19.  Section 422.47, subsection 3, paragraph e, Code
  8 20 Supplement 1997, is amended to read as follows:
  8 21    e.  If the circumstances change and as a result the
  8 22 tangible personal property or services are used or disposed of
  8 23 by the purchaser in a nonexempt manner or the purchaser
  8 24 becomes obligated to pay the tax, the purchaser is liable
  8 25 solely for the taxes and shall remit the taxes directly to the
  8 26 department in accordance with this subsection.
  8 27    Sec. 20.  Section 422.47, subsection 4, paragraph c, Code
  8 28 Supplement 1997, is amended to read as follows:
  8 29    c.  The purchaser may apply to the department for its
  8 30 review of the fuel exemption certificate.  In this event, the
  8 31 department shall review the fuel exemption certificate within
  8 32 twelve months from the date of application and determine the
  8 33 correct amount of the exemption.  If the amount determined by
  8 34 the department is different than the amount that the purchaser
  8 35 claims is exempt, the department shall promptly notify the
  9  1 purchaser of the determination.  Failure of the department to
  9  2 make a determination within twelve months from the date of
  9  3 application shall constitute a determination that the fuel
  9  4 exemption certificate is correct as submitted.  A
  9  5 determination of exemption by the department is final unless
  9  6 the purchaser appeals to the director for a revision of the
  9  7 determination within thirty sixty days after the postmark date
  9  8 of the notice of determination.  The director shall grant a
  9  9 hearing, and upon the hearing the director shall determine the
  9 10 correct exemption and notify the purchaser of the decision by
  9 11 mail.  The decision of the director is final unless the
  9 12 purchaser seeks judicial review of the director's decision
  9 13 under section 422.55 within thirty sixty days after the
  9 14 postmark date of the notice of the director's decision.
  9 15 Unless there is a substantial change, the department shall not
  9 16 impose penalties pursuant to section 422.58, both
  9 17 retroactively to purchases made after the date of application
  9 18 and prospectively until the department gives notice to the
  9 19 purchaser that a tax or additional tax is due, for failure to
  9 20 remit any tax due which is in excess of a determination made
  9 21 under this section.  A determination made by the department
  9 22 pursuant to this subsection does not constitute an audit for
  9 23 purposes of section 422.54.
  9 24    Sec. 21.  Section 422.50, Code 1997, is amended to read as
  9 25 follows:
  9 26    422.50  RECORDS REQUIRED.
  9 27    It shall be the duty of every retailer required to make a
  9 28 report return and pay any tax under this division, to preserve
  9 29 those records of the gross proceeds of receipts from sales or
  9 30 services as the director may require and it shall be the duty
  9 31 of every retailer to preserve for a period of five years all
  9 32 invoices and other records of goods, wares, merchandise, or
  9 33 services purchased for resale; and all these books, invoices,
  9 34 and other records shall be open to examination at any time by
  9 35 the department, and shall be made available within this state
 10  1 for examination upon reasonable notice when the director
 10  2 orders.
 10  3    Sec. 22.  Section 422.52, subsection 3, unnumbered
 10  4 paragraph 2, Code 1997, is amended by striking the unnumbered
 10  5 paragraph.
 10  6    Sec. 23.  Section 422.68, subsection 4, Code 1997, is
 10  7 amended to read as follows:
 10  8    4.  The department may make photostat, microfilm, or other
 10  9 photographic copies of records, reports, and other papers
 10 10 either filed by the taxpayer or prepared by the department.
 10 11 In addition, the department may create and use any system of
 10 12 recordkeeping reasonably calculated to preserve its records
 10 13 for any time period required by law.  When such photostat, or
 10 14 microfilm, or other copies have been made, the department may
 10 15 destroy such the original records which are the basis for the
 10 16 copies in such any manner as prescribed by the director.  Such
 10 17 photostat or Photostat, microfilm, or other types of copies,
 10 18 when no longer of use, may be destroyed as provided in
 10 19 subsection 3.  Such photostat Photostat, microfilm, or other
 10 20 photographic records shall be admissible in evidence when duly
 10 21 certified and authenticated by the officer having custody and
 10 22 control thereof of them.
 10 23    Sec. 24.  Section 422.72, subsection 1, unnumbered
 10 24 paragraph 1, Code Supplement 1997, is amended to read as
 10 25 follows:
 10 26    It is unlawful for the director, or any person having an
 10 27 administrative duty under this chapter, or any present or
 10 28 former officer or other employee of the state authorized by
 10 29 the director to examine returns, to divulge in any manner
 10 30 whatever, the business affairs, operations, or information
 10 31 obtained by an investigation under this chapter of records and
 10 32 equipment of any person visited or examined in the discharge
 10 33 of official duty, or the amount or source of income, profits,
 10 34 losses, expenditures or any particular thereof, set forth or
 10 35 disclosed in any return, or to permit any return or copy of a
 11  1 return or any book containing any abstract or particulars
 11  2 thereof to be seen or examined by any person except as
 11  3 provided by law.  It is unlawful for any person to willfully
 11  4 inspect, except as authorized by the director, any return or
 11  5 return information.  However, the director may authorize
 11  6 examination of such state returns and other state information
 11  7 which is confidential under this section, if a reciprocal
 11  8 arrangement exists, by tax officers of another state or the
 11  9 federal government.  The director may, by rules adopted
 11 10 pursuant to chapter 17A, authorize examination of state
 11 11 information and returns by other officers or employees of this
 11 12 state to the extent required by their official duties and
 11 13 responsibilities.  Disclosure of state information to tax
 11 14 officers of another state is limited to disclosures which have
 11 15 a tax administrative purpose and only to officers of those
 11 16 states which by agreement with this state limit the disclosure
 11 17 of the information as strictly as the laws of this state
 11 18 protecting the confidentiality of returns and information.
 11 19 The director shall place upon the state tax form a notice to
 11 20 the taxpayer that state tax information may be disclosed to
 11 21 tax officials of another state or of the United States for tax
 11 22 administrative purposes.
 11 23    Sec. 25.  Section 422.110, Code 1997, is amended to read as
 11 24 follows:
 11 25    422.110  INCOME TAX CREDIT IN LIEU OF REFUND.
 11 26    In lieu of the fuel tax refund provided in sections section
 11 27 452A.17 to 452A.19, a person or corporation subject to
 11 28 taxation under divisions II or III of this chapter, except
 11 29 persons or corporations licensed under section 452A.4, may
 11 30 elect to receive an income tax credit for tax years beginning
 11 31 on or after January 1, 1975.  The person or corporation which
 11 32 elects to receive an income tax credit shall cancel its refund
 11 33 permit obtained under section 452A.18 within thirty days after
 11 34 the first day of its tax year or the permit becomes invalid at
 11 35 that time.  For the purposes of this section, "person"
 12  1 includes a person claiming a tax credit based upon the
 12  2 person's pro rata share of the earnings from a partnership,
 12  3 limited liability company, or corporation which is not subject
 12  4 to a tax under division II or III of this chapter as a
 12  5 partnership, limited liability company, or corporation.  If
 12  6 the election to receive an income tax credit has been made, it
 12  7 remains effective for at least one tax year, and for
 12  8 subsequent tax years unless a change is requested and a new
 12  9 refund permit applied for within thirty days after the first
 12 10 day of the person's or corporation's tax year.  The income tax
 12 11 credit shall be the amount of the Iowa fuel tax paid on fuel
 12 12 purchased by the person or corporation and used as follows: is
 12 13 subject to the conditions provided in section 452A.17 with the
 12 14 exception that the income tax credit is not available for
 12 15 refunds relating to casualty losses, transport diversions,
 12 16 pumping credits, blending errors, idle time, power takeoffs,
 12 17 reefer units, and exports by eligible purchasers.
 12 18    1.  Motor fuel as defined in section 452A.2, subsection 17,
 12 19 used for the purpose of operating or propelling farm tractors,
 12 20 corn shellers, roller mills, truck-mounted feed grinders,
 12 21 stationary engines, for producing denatured alcohol within the
 12 22 state, for cleaning or dyeing, or for any purpose other than
 12 23 in watercraft or aircraft or in motor vehicles operated or
 12 24 intended to be operated upon the public highways.
 12 25    2.  Special fuel, as defined in section 452A.2, used for
 12 26 the purpose of operation of corn shellers, roller mills, and
 12 27 feed grinders mounted on trucks.
 12 28    3.  Motor fuel placed in motor vehicles and used, other
 12 29 than on public highways, in the extraction and processing of
 12 30 natural deposits.
 12 31    4.  Motor fuel or special fuel used by a bona fide
 12 32 commercial fisher, licensed and operating under an owner's
 12 33 certificate for commercial fishing gear issued pursuant to
 12 34 section 482.4.
 12 35    However, no credit shall be given with respect to motor
 13  1 fuel taken out of the state in fuel supply tanks of motor
 13  2 vehicles, motor fuel used in aircraft or watercraft, or motor
 13  3 fuel used in the performance of a contract which is paid out
 13  4 of state funds unless the contract for the work contains a
 13  5 certificate made under penalty for false certificate that the
 13  6 estimate, bid or price to be paid for the work includes no
 13  7 amount representing motor fuel tax subject to a credit.  The
 13  8 right to a credit under this section is not assignable and the
 13  9 credit may be claimed only by the person or corporation that
 13 10 purchased the fuel.
 13 11    Sec. 26.  Section 422.111, unnumbered paragraph 1, Code
 13 12 1997, is amended to read as follows:
 13 13    The fuel tax credit may be applied against the income tax
 13 14 liability of the person or corporation as determined on the
 13 15 tax return filed for the year in which the fuel tax was paid.
 13 16 The department shall provide forms for claiming the fuel tax
 13 17 credit.  If the fuel tax credit would result in an overpayment
 13 18 of income tax, the person or corporation may apply for a
 13 19 refund of the amount of overpayment or may have the
 13 20 overpayment credited to income tax due in subsequent years.
 13 21 Each person or corporation that claims a fuel tax credit shall
 13 22 maintain the original invoices showing the purchase of the
 13 23 fuel on which a credit is claimed.  No An invoice is not
 13 24 acceptable in support of a claim for credit unless it the
 13 25 invoice is a separate serially numbered invoice covering no
 13 26 more than one purchase of motor fuel or undyed special fuel,
 13 27 prepared by the seller on a form approved by the department,
 13 28 nor unless it or unless the invoice is legibly written with no
 13 29 corrections or erasures and shows the date of sale, the name
 13 30 and address of the seller and of the purchaser, the kind of
 13 31 fuel, the gallonage in figures, the per gallon price of the
 13 32 fuel, the total purchase price including the Iowa fuel tax,
 13 33 and that the total purchase price has been paid.  However, as
 13 34 to refund invoices made on a billing machine the department
 13 35 may waive these requirements.  If an original invoice is lost
 14  1 or destroyed, the department may approve a credit supported by
 14  2 a copy identified and certified by the seller as being a true
 14  3 copy of the original.  Each person or corporation that claims
 14  4 a fuel tax credit shall maintain complete records of purchases
 14  5 of motor fuel or undyed special fuel on which Iowa fuel tax
 14  6 was paid, and for which a fuel tax credit is claimed.
 14  7    Sec. 27.  Section 422.111, unnumbered paragraph 3, Code
 14  8 1997, is amended by striking the unnumbered paragraph.
 14  9    Sec. 28.  Section 422.121, Code Supplement 1997, is amended
 14 10 to read as follows:
 14 11    422.121  APPROPRIATION – LIMITATION.
 14 12    Beginning with the fiscal year beginning July 1, 1997,
 14 13 there is appropriated annually from the general fund of the
 14 14 state two million dollars to refund the credits allowed under
 14 15 this division.  Notwithstanding section 422.120, for tax years
 14 16 beginning on or after January 1, 1997, the livestock
 14 17 production tax credit shall only be allowed for cow-calf
 14 18 operations.  In calculating the tax credit for cow-calf
 14 19 operations for tax years beginning in the 1997 calendar year,
 14 20 bred cows, bred heifers, and breeding bulls in the operations'
 14 21 inventory on December 31 of the tax year which were also in
 14 22 the operations on July 1 of the tax year and stockers and
 14 23 feeders sold during the tax year are to be counted.  In
 14 24 calculating the tax credit for cow-calf operations for tax
 14 25 years beginning on or after January 1, 1998, only those bred
 14 26 cows, bred heifers, and breeding bulls in the operations'
 14 27 inventory on December 31 of the tax year which were also in
 14 28 the operations on July 1 of the tax year are to be counted.
 14 29    Sec. 29.  Section 422B.10, subsection 2, paragraph c, Code
 14 30 Supplement 1997, is amended to read as follows:
 14 31    c.  The director of revenue and finance shall remit a final
 14 32 payment of the remainder of tax moneys due the city or county
 14 33 for the fiscal year before November 10 of the next fiscal
 14 34 year.  If an overpayment has resulted during the previous
 14 35 fiscal year, the first November payment of the new fiscal year
 15  1 shall be adjusted to reflect any overpayment.
 15  2    Sec. 30.  Section 422D.3, unnumbered paragraph 4, Code
 15  3 1997, is amended to read as follows:
 15  4    The director, in consultation with local officials, shall
 15  5 collect and account for a local income surtax and any interest
 15  6 and penalties.  The director shall credit local income surtax
 15  7 receipts and any interest and penalties collected from returns
 15  8 filed on or before November 1 of the calendar year following
 15  9 the tax year for which the local income surtax is imposed to a
 15 10 "local income surtax fund" established in the office of the
 15 11 treasurer of state department of revenue and finance.  All
 15 12 local income surtax receipts and any interest and penalties
 15 13 received or refunded from returns filed after November 1 of
 15 14 the calendar year following the tax year for which the local
 15 15 income surtax is imposed shall be deposited in or withdrawn
 15 16 from the state general fund and shall be considered part of
 15 17 the cost of administering the local income surtax.
 15 18    Sec. 31.  Section 424.10, subsections 2 and 3, Code 1997,
 15 19 are amended to read as follows:
 15 20    2.  If a return required by this chapter is not filed, or
 15 21 if a return when filed is incorrect or insufficient and the
 15 22 maker fails to file a corrected or sufficient return within
 15 23 twenty days after the return is required by notice from the
 15 24 department, the department shall determine the amount of
 15 25 charge due from information as the department may be able to
 15 26 obtain and, if necessary, may estimate the charge on the basis
 15 27 of external indices or factors.  The department shall give
 15 28 notice of the determination to the person liable for the
 15 29 charge.  The determination shall fix the charge unless the
 15 30 person against whom it is assessed shall, within sixty days
 15 31 after the giving of date of the notice of the determination,
 15 32 apply to the director for a hearing or unless the taxpayer
 15 33 contests the determination by paying the tax, interest, and
 15 34 penalty and timely filing a claim for refund.  At the hearing
 15 35 evidence may be offered to support the determination or to
 16  1 prove that it is incorrect.  After the hearing the director
 16  2 shall give notice of the decision to the person liable for the
 16  3 charge.
 16  4    If a depositor's, receiver's, or other person's challenge
 16  5 relates to the diminution rate, the burden of proof upon the
 16  6 challenger shall only be satisfied by clear and convincing
 16  7 evidence.
 16  8    3.  If the amount paid is greater than the correct charge,
 16  9 penalty, and interest due, the department shall refund the
 16 10 excess, with interest after sixty days from the date of
 16 11 payment at the rate in effect under section 421.7, pursuant to
 16 12 rules prescribed by the director.  However, the director shall
 16 13 not allow a claim for refund that has not been filed with the
 16 14 department within five years after the charge payment upon
 16 15 which a refund is claimed became due, or one year after the
 16 16 charge payment was made, whichever time is later.  A
 16 17 determination by the department of the amount of charge,
 16 18 penalty, and interest due, or the amount of refund for any
 16 19 excess amount paid, is final unless the person aggrieved by
 16 20 the determination appeals to the director for a revision of
 16 21 the determination within thirty sixty days from the postmark
 16 22 date of the notice of determination of charge, penalty, and
 16 23 interest due or refund owing.  The director shall grant a
 16 24 hearing, and upon hearing the director shall determine the
 16 25 correct charge, penalty, and interest due or refund owing, and
 16 26 notify the appellant of the decision by mail.  The decision of
 16 27 the director is final unless the appellant seeks judicial
 16 28 review of the director's decision under section 424.13.
 16 29    Sec. 32.  Section 427.1, subsection 14, unnumbered
 16 30 paragraph 1, Code Supplement 1997, is amended to read as
 16 31 follows:
 16 32    A society or organization claiming an exemption under
 16 33 subsection 5 or subsection 8 of this section shall file with
 16 34 the assessor not later than July 1 April 15 a statement upon
 16 35 forms to be prescribed by the director of revenue and finance,
 17  1 describing the nature of the property upon which the exemption
 17  2 is claimed and setting out in detail any uses and income from
 17  3 the property derived from the rentals, leases, or other uses
 17  4 of the property not solely for the appropriate objects of the
 17  5 society or organization.  Upon the filing and allowance of the
 17  6 claim, the claim shall be allowed on the property for
 17  7 successive years without further filing as long as the
 17  8 property is used for the purposes specified in the original
 17  9 claim for exemption.  When the property is sold or
 17 10 transferred, the county recorder shall provide notice of the
 17 11 transfer to the assessor.  The notice shall describe the
 17 12 property transferred and the name of the person to whom title
 17 13 to the property is transferred.
 17 14    Sec. 33.  Section 427.1, subsection 24, Code Supplement
 17 15 1997, is amended to read as follows:
 17 16    24.  LAND CERTIFIED AS A WILDLIFE HABITAT.  The owner of
 17 17 agricultural land may designate not more than two acres of the
 17 18 land for use as a wildlife habitat.  After inspection, if the
 17 19 land meets the standards established by the natural resource
 17 20 commission for a wildlife habitat under section 483A.3, the
 17 21 department of natural resources shall certify the designated
 17 22 land as a wildlife habitat and shall send a copy of the
 17 23 certification to the appropriate assessor not later than
 17 24 February 1 of the assessment year for which the exemption is
 17 25 requested.  The department of natural resources may
 17 26 subsequently withdraw certification of the designated land if
 17 27 it fails to meet the established standards for a wildlife
 17 28 habitat and the assessor shall be given written notice of the
 17 29 decertification.
 17 30    Sec. 34.  Section 428.1, unnumbered paragraph 1, Code 1997,
 17 31 is amended to read as follows:
 17 32    Every person shall list for the assessor all property
 17 33 subject to taxation in the state, of which the person is the
 17 34 owner, or has the control or management, in the following
 17 35 manner including but not limited to the following:
 18  1    Sec. 35.  Section 429.2, subsection 1, Code 1997, is
 18  2 amended to read as follows:
 18  3    1.  Notwithstanding the provisions of chapter 17A, the
 18  4 taxpayer shall have thirty days from the date of postmark of
 18  5 the notice of assessment to appeal the assessment to the state
 18  6 board of tax review.  Thereafter, the proceedings before the
 18  7 state board of tax review shall conform to the provisions of
 18  8 subsection 2, section 421.1, subsection 4, and chapter 17A.
 18  9    Sec. 36.  Section 450.22, Code 1997, is amended to read as
 18 10 follows:
 18 11    450.22  ADMINISTRATION AVOIDED – INHERITANCE TAX DUTIES
 18 12 REQUIRED.
 18 13    When the heirs or persons entitled to inherit the property
 18 14 of an estate subject to tax under this chapter desire to avoid
 18 15 the appointment of a personal representative as provided in
 18 16 section 450.21, and in all instances where real estate is
 18 17 involved and there are no regular probate proceedings, they or
 18 18 one of them shall file under oath the inventories required by
 18 19 section 633.361 and the required reports, perform all the
 18 20 duties required by this chapter of the personal
 18 21 representative, and file the inheritance tax return.  However,
 18 22 this section does not apply and a return is not required even
 18 23 though real estate is part of the assets subject to tax under
 18 24 this chapter, if all of the assets are held in joint tenancy
 18 25 with right of survivorship between husband and wife alone, or
 18 26 if the estate exclusively consists of property held in joint
 18 27 tenancy with the right of survivorship solely by the decedent
 18 28 and any individuals listed in section 450.9 as individuals
 18 29 that are entirely exempt from Iowa inheritance tax and the
 18 30 estate does not have a federal estate tax obligation.  When
 18 31 this section applies, proceedings for the collection of the
 18 32 tax when a personal representative is not appointed, shall
 18 33 conform as nearly as possible to proceedings under this
 18 34 chapter in other cases.
 18 35    Sec. 37.  Section 450.37, Code 1997, is amended by adding
 19  1 the following new subsection:
 19  2    NEW SUBSECTION.  3.  In addition to the applicable period
 19  3 of limitation for examination and determination, the
 19  4 department shall make an examination to adjust the value of
 19  5 real property for Iowa inheritance tax purposes to the value
 19  6 accepted by the internal revenue service for federal estate
 19  7 tax purposes.  The department shall make an examination and
 19  8 adjustment for the value of the real property at any time
 19  9 within six months from the date of receipt by the department
 19 10 of written notice from the personal representative for the
 19 11 estate that all federal estate tax matters between the estate
 19 12 and the internal revenue service have been concluded.  To
 19 13 begin the running of the six-month period, the notice shall be
 19 14 in writing in a form sufficient to inform the department of
 19 15 the final disposition of the federal estate tax obligation
 19 16 with the internal revenue service and a copy of the federal
 19 17 document showing the final disposition and final federal
 19 18 adjustments of all real property values must be attached.  The
 19 19 department shall make an adjustment to the value of real
 19 20 property for inheritance tax purposes to the value accepted
 19 21 for federal estate tax purposes regardless of whether an
 19 22 inheritance clearance has been issued, an appraisal has been
 19 23 obtained on the real property indicating a contrary value,
 19 24 whether there has been an acceptance of another value for real
 19 25 property by the department, or whether an agreement has been
 19 26 entered into by the department and the personal representative
 19 27 for the estate and persons having an interest in the real
 19 28 property regarding the value of the real property.
 19 29 Notwithstanding the period of limitation specified in section
 19 30 450.94, subsection 3, the personal representative for the
 19 31 estate shall have six months from the day of final disposition
 19 32 of any real property valuation matter between the personal
 19 33 representative for the estate and the internal revenue service
 19 34 to claim a refund of an overpayment of tax due to the change
 19 35 in the valuation of real property by the internal revenue
 20  1 service.
 20  2    Sec. 38.  Section 450.94, subsections 2 and 3, Code 1997,
 20  3 are amended to read as follows:
 20  4    2.  The taxpayer shall file an inheritance tax return on
 20  5 forms to be prescribed by the director of revenue and finance
 20  6 on or before the last day of the ninth month after the death
 20  7 of the decedent.  When an inheritance tax return is filed, the
 20  8 department shall examine it and determine the correct amount
 20  9 of tax. If the amount paid is less than the correct amount
 20 10 due, the department shall notify the taxpayer of the total
 20 11 amount due together with any penalty and interest which shall
 20 12 be a sum certain if paid on or before the last day of the
 20 13 month in which the notice is postmarked dated, or on or before
 20 14 the last day of the following month if the notice is
 20 15 postmarked dated after the twentieth day of a month and before
 20 16 the first day of the following month.
 20 17    3.  If the amount paid is greater than the correct tax,
 20 18 penalty, and interest due, the department shall refund the
 20 19 excess with interest.  Interest shall be computed at the rate
 20 20 in effect under section 421.7, under the rules prescribed by
 20 21 the director counting each fraction of a month as an entire
 20 22 month and the interest shall begin to accrue on the first day
 20 23 of the second calendar month following the date of payment or
 20 24 on the date the return was due to be filed or was filed,
 20 25 whichever is the latest.  However, the director shall not
 20 26 allow a claim for refund or credit that has not been filed
 20 27 with the department within three years after the tax payment
 20 28 upon which a refund or credit is claimed became due, or one
 20 29 year after the tax payment was made, whichever time is later.
 20 30 A determination by the department of the amount of tax,
 20 31 penalty, and interest due, or the amount of refund for excess
 20 32 tax paid, is final unless the person aggrieved by the
 20 33 determination appeals to the director for a revision of the
 20 34 determination within sixty days from the postmark date of the
 20 35 notice of determination of tax, penalty, and interest due or
 21  1 refund owing or unless the taxpayer contests the determination
 21  2 by paying the tax, interest, and penalty and timely filing a
 21  3 claim for refund.  The director shall grant a hearing, and
 21  4 upon the hearing the director shall determine the correct tax,
 21  5 penalty, and interest or refund due, and notify the appellant
 21  6 of the decision by mail.  The decision of the director is
 21  7 final unless the appellant seeks judicial review of the
 21  8 director's decision under section 450.59 within sixty days
 21  9 after the postmark date of the notice of the director's
 21 10 decision.
 21 11    Sec. 39.  Section 451.12, Code 1997, is amended to read as
 21 12 follows:
 21 13    451.12  APPLICABLE STATUTES – PENALTIES.
 21 14    All the provisions of chapter 450 with respect to the lien
 21 15 provisions of section 450.7, and the determination,
 21 16 imposition, payment, and collection of the tax imposed under
 21 17 that chapter, including penalty and interest upon delinquent
 21 18 taxes and the confidentiality of the tax return, are
 21 19 applicable to this chapter, except as they are in conflict
 21 20 with this chapter.  The exceptions to the lien provisions
 21 21 found in section 450.7 do not apply to this chapter.  The
 21 22 penalty provisions set out in section 450.53 shall apply to a
 21 23 person in possession of assets to be reported for purposes of
 21 24 taxation who willfully makes a false or fraudulent return or
 21 25 willfully fails to pay the tax, supply the information, make,
 21 26 sign, or file the required return within the time required by
 21 27 law or a person who willfully attempts in any manner to evade
 21 28 taxes imposed by this chapter or avoid payment of the tax.
 21 29 The director of revenue and finance shall adopt rules
 21 30 necessary for the enforcement of this chapter.
 21 31    Sec. 40.  Section 452A.2, subsection 11, Code 1997, is
 21 32 amended to read as follows:
 21 33    11.  "Exporter" means a person or other entity who acquires
 21 34 fuel in this state exclusively for export to another state.
 21 35    Sec. 41.  Section 452A.2, subsection 17, paragraph a, Code
 22  1 1997, is amended to read as follows:
 22  2    a.  All products commonly or commercially known or sold as
 22  3 gasoline, (including casinghead and absorption or natural
 22  4 gasoline), regardless of their classifications or uses, and
 22  5 including transmix which serves as a buffer between fuel
 22  6 products in the pipeline distribution process.
 22  7    Sec. 42.  Section 452A.8, subsection 1, unnumbered
 22  8 paragraph 1, Code 1997, is amended to read as follows:
 22  9    For the purpose of determining the amount of the
 22 10 supplier's, restrictive supplier's, or importer's tax
 22 11 liability, a supplier or restrictive supplier shall file a
 22 12 return, not later than the last day of the month following the
 22 13 month in which this division becomes effective and not later
 22 14 than the last day of each calendar month thereafter, and an
 22 15 importer shall file a report return semi-monthly with the
 22 16 department, signed under penalty for false certification.  For
 22 17 an importer for the reporting period from the first day of the
 22 18 month through the fifteenth of the month, the report return is
 22 19 due on the last day of the month.  For an importer for the
 22 20 reporting period from the sixteenth of the month through the
 22 21 last day of the month, the report return is due on the
 22 22 fifteenth day of the following month.  The reports returns
 22 23 shall include the following:
 22 24    Sec. 43.  Section 452A.8, subsection 2, unnumbered
 22 25 paragraph 1, Code 1997, is amended to read as follows:
 22 26    At the time of filing a report return, a supplier or
 22 27 restrictive supplier shall pay to the department the full
 22 28 amount of the fuel tax due for the preceding calendar month.
 22 29 An importer shall pay to the department the full amount of
 22 30 fuel tax due for the preceding semimonthly period.  The tax
 22 31 shall be computed as follows:
 22 32    Sec. 44.  Section 452A.8, subsection 2, paragraph d, Code
 22 33 1997, is amended to read as follows:
 22 34    d.  The director may require by rule that reports returns
 22 35 be filed by electronic transmission.
 23  1    Sec. 45.  Section 452A.8, subsection 3, Code 1997, is
 23  2 amended to read as follows:
 23  3    3.  For the purpose of determining the amount of the tax
 23  4 liability on alcohol blended to produce ethanol blended
 23  5 gasoline, each licensed blender shall, not later than the last
 23  6 day of each month following the month in which the blending is
 23  7 done, file with the department a monthly report return, signed
 23  8 under penalty for false certificate, containing information
 23  9 required by rules adopted by the director.
 23 10    Sec. 46.  Section 452A.9, Code 1997, is amended to read as
 23 11 follows:
 23 12    452A.9  REPORT RETURN FROM PERSONS NOT LICENSED AS
 23 13 SUPPLIERS, RESTRICTIVE SUPPLIERS, OR IMPORTERS.
 23 14    Every person other than a licensed supplier, restrictive
 23 15 supplier, or importer, who purchases, brings into this state,
 23 16 or otherwise acquires within this state motor fuel or undyed
 23 17 special fuel, not otherwise exempted, which the person has
 23 18 knowingly not paid or incurred liability to pay either to a
 23 19 licensee or to a dealer the motor fuel or special fuel tax,
 23 20 shall be subject to the provisions of this division that apply
 23 21 to suppliers, restrictive suppliers, and importers of motor
 23 22 fuel or undyed special fuel and shall make file the same
 23 23 reports returns and make the same tax payments and be subject
 23 24 to the same penalties for delinquent reporting or nonreporting
 23 25 filing or nonfiling or delinquent payment or nonpayment as
 23 26 apply to suppliers, restrictive suppliers, and importers.
 23 27    Sec. 47.  Section 452A.15, subsection 3, Code 1997, is
 23 28 amended to read as follows:
 23 29    3.  The reports required in this section shall be for
 23 30 information purposes only and the department may in its
 23 31 discretion waive the filing of any of these reports not
 23 32 necessary for proper administration of this division.  The
 23 33 reports required in this section shall be certified under
 23 34 penalty for false certificate and filed with the department
 23 35 within the time allowed for filing of suppliers' and
 24  1 restrictive suppliers' reports returns of motor fuel or
 24  2 special fuel withdrawn from a terminal within this state or
 24  3 imported into this state.
 24  4    Sec. 48.  Section 452A.17, subsection 1, paragraph a,
 24  5 subparagraph (4), Code Supplement 1997, is amended to read as
 24  6 follows:
 24  7    (4)  Fuel used in unlicensed vehicles, stationary engines,
 24  8 and implements used in agricultural production, and machinery
 24  9 and equipment used for nonhighway purposes.
 24 10    Sec. 49.  Section 452A.17, subsection 1, paragraph b,
 24 11 subparagraphs (4) and (5), Code Supplement 1997, are amended
 24 12 to read as follows:
 24 13    (4)  The claim shall state the gallonage of motor fuel or
 24 14 undyed special fuel that was used or will be used by the
 24 15 claimant other than in aircraft, watercraft, or to propel
 24 16 motor vehicles and the gallonage of undyed special fuel that
 24 17 was or will be used by the claimant other than in aircraft or
 24 18 to propel motor vehicles, the manner in which the motor fuel
 24 19 or undyed special fuel was used or will be used, and the
 24 20 equipment in which it was used or will be used.
 24 21    (5)  The claim shall state whether the claimant used fuel
 24 22 for aircraft, watercraft, or to propel motor vehicles from the
 24 23 same tanks or receptacles in which the claimant kept the motor
 24 24 fuel or undyed special fuel on which the refund is claimed or
 24 25 whether the claimant used fuel for aircraft or to propel motor
 24 26 vehicles from the same tanks or receptacles in which the
 24 27 claimant kept the undyed special fuel on which the refund is
 24 28 claimed.
 24 29    Sec. 50.  Section 452A.17, subsection 2, Code Supplement
 24 30 1997, is amended to read as follows:
 24 31    2.  In lieu of the refund provided in this section, a
 24 32 person may receive an income tax credit as provided in chapter
 24 33 422, division IX, but only as to motor fuel or undyed special
 24 34 fuel not used in motor vehicles, aircraft, or watercraft or as
 24 35 to undyed special fuel not used in motor vehicles or aircraft.
 25  1    Sec. 51.  Section 452A.17, subsection 3, paragraph b, Code
 25  2 Supplement 1997, is amended to read as follows:
 25  3    b.  A refund shall not be paid with respect to any motor
 25  4 fuel or undyed special fuel taken out of this state in supply
 25  5 tanks of watercraft, aircraft, or motor vehicles or with
 25  6 respect to any undyed special fuel taken out of this state in
 25  7 supply tanks of aircraft or motor vehicles.
 25  8    Sec. 52.  Section 452A.17, subsection 3, paragraph c, Code
 25  9 Supplement 1997, is amended by striking the paragraph.
 25 10    Sec. 53.  Section 452A.21, unnumbered paragraph 1, Code
 25 11 1997, is amended to read as follows:
 25 12    Persons not licensed under this division who blend motor
 25 13 fuel and alcohol to produce ethanol blended gasoline may file
 25 14 for a refund for the difference between taxes paid on the
 25 15 motor fuel purchased to produce ethanol blended gasoline and
 25 16 the tax due on the ethanol blended gasoline blended.  If,
 25 17 during any month, a person licensed under this division uses
 25 18 tax paid motor fuel to blend ethanol blended gasoline and the
 25 19 refund otherwise due under this section is greater than the
 25 20 licensee's total tax liability for that month, the licensee is
 25 21 entitled to a credit.  The claim for credit shall be filed as
 25 22 part of the report return required by section 452A.8.
 25 23    Sec. 54.  NEW SECTION.  452A.22  TAX COLLECTED ON EXEMPT
 25 24 FUEL.
 25 25    If an amount of tax represented by a licensee to a
 25 26 purchaser as constituting tax due is computed upon gallonage
 25 27 that is not taxable or the amount represented is in excess of
 25 28 the actual amount of tax due and the amount represented is
 25 29 actually paid by the purchaser to the licensee, the excess
 25 30 amount of tax paid shall be returned to the purchaser by the
 25 31 licensee.  If the licensee fails to return the excess tax paid
 25 32 to the purchaser, the amount which the purchaser has paid to
 25 33 the licensee shall be remitted by the licensee to the
 25 34 department.
 25 35    Sec. 55.  Section 452A.60, unnumbered paragraph 1, Code
 26  1 1997, is amended to read as follows:
 26  2    The department of revenue and finance or the state
 26  3 department of transportation shall prescribe and furnish all
 26  4 forms, as applicable, upon which reports, returns, and
 26  5 applications shall be made and claims for refund presented
 26  6 under this chapter and may prescribe forms of record to be
 26  7 kept by suppliers, restrictive suppliers, importers,
 26  8 exporters, blenders, common carriers, contract carriers,
 26  9 licensed compressed natural gas and liquefied petroleum gas
 26 10 dealers and users, terminal operators, and interstate
 26 11 commercial motor vehicle operators.
 26 12    Sec. 56.  Section 452A.61, Code 1997, is amended to read as
 26 13 follows:
 26 14    452A.61  TIMELY FILING OF REPORTS AND RETURNS – EXTENSION.
 26 15    The reports, returns, and remittances required under this
 26 16 chapter shall be deemed filed within the required time if
 26 17 postpaid, properly addressed and postmarked on or before
 26 18 midnight of the day on which due and payable.  If the final
 26 19 filing date falls on a Saturday, Sunday or legal holiday the
 26 20 next secular or business day shall be the final filing date.
 26 21    The department of revenue and finance or the state
 26 22 department of transportation upon application may grant a
 26 23 reasonable extension of time for the filing of any required
 26 24 report, return, or tax payment, or both.
 26 25    Sec. 57.  Section 452A.63, Code 1997, is amended to read as
 26 26 follows:
 26 27    452A.63  INFORMATION CONFIDENTIAL.
 26 28    All information obtained by the department of revenue and
 26 29 finance or the state department of transportation from the
 26 30 examining of reports, returns, or records required to be filed
 26 31 or kept under this chapter shall be treated as confidential
 26 32 and shall not be divulged except to other state officers, a
 26 33 member or members of the general assembly, or any duly
 26 34 appointed committee of either or both houses of the general
 26 35 assembly, or to a representative of the state having some
 27  1 responsibility in connection with the collection of the taxes
 27  2 imposed or in proceedings brought under the provisions of this
 27  3 chapter.  The appropriate state agency may make available to
 27  4 the public on or before forty-five days following the last day
 27  5 of the month in which the tax is required to be paid, the
 27  6 names of suppliers, restrictive suppliers, and importers and
 27  7 as to each of them the total gallons of motor fuel, undyed
 27  8 special fuel, and ethanol-blended gasoline withdrawn from
 27  9 terminals or imported into the state during that month.  The
 27 10 department of revenue and finance or the state department of
 27 11 transportation, upon request of officials entrusted with
 27 12 enforcement of the motor vehicle fuel tax laws of the federal
 27 13 government or any other state, may forward to such these
 27 14 officials any pertinent information which the appropriate
 27 15 state agency may have relative to motor fuel and special fuel
 27 16 provided the officials of the other state furnish like
 27 17 information.
 27 18    Any person violating the provisions of this section, and
 27 19 disclosing the contents of any records, returns, or reports
 27 20 required to be kept or made under the provisions of this
 27 21 chapter, except as otherwise provided, shall be guilty of a
 27 22 simple misdemeanor.
 27 23    Sec. 58.  Section 452A.67, Code 1997, is amended to read as
 27 24 follows:
 27 25    452A.67  LIMITATION ON COLLECTION PROCEEDINGS.
 27 26    The department shall examine the return and enforce
 27 27 collection of any amount of tax, penalty, fine, or interest
 27 28 over and above the amount shown to be due by reports the
 27 29 return filed by a licensee as soon as practicable but no later
 27 30 than three years after the return is filed.  An assessment
 27 31 shall not be made covering a period beyond three years after
 27 32 the return is filed except that the period for the examination
 27 33 and determination of the correct amount of tax is unlimited in
 27 34 the case of a false or fraudulent return made with the intent
 27 35 to evade tax or in the case of a failure to file a return.
 28  1    Sec. 59.  Section 452A.68, unnumbered paragraph 1, Code
 28  2 1997, is amended to read as follows:
 28  3    If a licensee files a false report return of the data or
 28  4 information required by this chapter, or fails, refuses, or
 28  5 neglects to file a report return required by this chapter, or
 28  6 to pay the full amount of fuel tax as required by this
 28  7 chapter, or is substantially delinquent in paying a tax due,
 28  8 owing, and administered by the department of revenue and
 28  9 finance, and interest and penalty if appropriate, or if the
 28 10 person is a corporation and if any officer having a
 28 11 substantial legal or equitable interest in the ownership of
 28 12 the corporation owes any delinquent tax of the licensee
 28 13 corporation, or interest or penalty on the tax, administered
 28 14 by the department, then after ten days' written notice by mail
 28 15 directed to the last known address of the licensee setting a
 28 16 time and place at which the licensee may appear and show cause
 28 17 why the license should not be canceled, and if the licensee
 28 18 fails to appear or if upon the hearing it is shown that the
 28 19 licensee failed to correctly report or pay the tax, the
 28 20 appropriate state agency may cancel the license and shall
 28 21 notify the licensee of the cancellation by mail to the
 28 22 licensee's last known address.
 28 23    Sec. 60.  Section 452A.74A, subsection 7, Code 1997, is
 28 24 amended to read as follows:
 28 25    7.  FALSE OR FRAUDULENT REPORT OR RETURN.  Any person,
 28 26 including an officer of a corporation or a manager of a
 28 27 limited liability company, who is required to make, render,
 28 28 sign, or verify any report or return required by this chapter
 28 29 and who makes a false or fraudulent report or return, or who
 28 30 fails to file a report or return with the intent to evade the
 28 31 tax, shall be guilty of a fraudulent practice.  Any person who
 28 32 aids, abets, or assists another person in making any false or
 28 33 fraudulent report or return or false statement in any report
 28 34 or return with the intent to evade payment of tax shall be
 28 35 guilty of a fraudulent practice.
 29  1    Sec. 61.  Section 452A.86, Code 1997, is amended to read as
 29  2 follows:
 29  3    452A.86  METHOD OF DETERMINING GALLONAGE.
 29  4    The exclusive method of determining gallonage of any
 29  5 purchases or sales of motor fuel, undyed special fuel,
 29  6 compressed natural gas, or liquefied petroleum gas as defined
 29  7 in this chapter and distillate fuels shall be on a gross
 29  8 volume basis.  A temperature-adjusted or other method shall
 29  9 not be used, except as it applies to liquefied petroleum gas
 29 10 and the sale or exchange of petroleum products between
 29 11 petroleum refiners.  All invoices, bills of lading, or other
 29 12 records of sale or purchase and all reports returns or records
 29 13 required to be made, kept, and maintained by a supplier,
 29 14 restrictive supplier, importer, exporter, blender, or
 29 15 compressed natural gas or liquefied petroleum gas dealer or
 29 16 user shall be made, kept, and maintained on the gross volume
 29 17 basis.  For purposes of this section, "distillate fuels" means
 29 18 any fuel oil, gas oil, topped crude oil, or other petroleum
 29 19 oils derived by refining or processing crude oil or unfinished
 29 20 oils which have a boiling range at atmospheric pressure which
 29 21 falls completely or in part between five hundred fifty and
 29 22 twelve hundred degrees Fahrenheit.
 29 23    Sec. 62.  Section 453A.6, subsection 3, Code 1997, is
 29 24 amended to read as follows:
 29 25    3.  Payment of such the tax shall be evidenced by stamps
 29 26 purchased from the department by a distributor or manufacturer
 29 27 and securely affixed to each individual package of cigarettes
 29 28 in amounts equal to the tax thereon as imposed by this
 29 29 chapter, or by the impressing of an indicium upon individual
 29 30 packages of cigarettes, under regulations prescribed by the
 29 31 director.
 29 32    Sec. 63.  Section 453A.6, Code 1997, is amended by adding
 29 33 the following new subsections:
 29 34    NEW SUBSECTION.  4.  Any other person who purchases or is
 29 35 in possession of unstamped cigarettes shall pay the tax
 30  1 directly to the department.
 30  2    NEW SUBSECTION.  5.  The per cigarette amount of the tax
 30  3 shall be added to the selling price of every package of
 30  4 cigarettes sold in this state and shall be collected from the
 30  5 purchaser so that the ultimate consumer bears the burden of
 30  6 the tax.
 30  7    Sec. 64.  Section 453A.8, subsection 1, Code 1997, is
 30  8 amended to read as follows:
 30  9    1.  Stamps shall be sold by and purchased from the
 30 10 department.  The department shall sell stamps to the holder of
 30 11 a state distributor's or manufacturer's permit which has not
 30 12 been revoked and to no other person.  Stamps shall be sold to
 30 13 the permit holders at a discount of two percent of the face
 30 14 value.  Stamps shall be sold in unbroken books of one thousand
 30 15 stamps, unbroken rolls of thirty thousand stamps, or unbroken
 30 16 lots of any other from form authorized by the director.
 30 17    Sec. 65.  Section 453A.15, subsections 1, 3, 4, and 6, Code
 30 18 1997, are amended to read as follows:
 30 19    1.  The director may prescribe the forms necessary for the
 30 20 efficient administration of this division and may require
 30 21 uniform books and records to be used and kept by each permit
 30 22 holder or other person as deemed necessary.  The director may
 30 23 also require each permit holder or other person to keep and
 30 24 retain in the director's possession evidence on prescribed
 30 25 forms of all transactions involving the purchase and sale of
 30 26 cigarettes or the purchase and use of stamps.  The evidence
 30 27 shall be kept for a period of two years from the date of each
 30 28 transaction, for the inspection at all times by the
 30 29 department.
 30 30    3.  The director may by regulation require every holder of
 30 31 a manufacturer's or state permit or other person to make and
 30 32 deliver to the department on or before the tenth day of each
 30 33 month a report or reports for the preceding calendar month,
 30 34 upon a form or forms prescribed by the director, and may
 30 35 require that such the reports shall be properly sworn to and
 31  1 executed by the permit holder or the holder's duly authorized
 31  2 representative or other person.
 31  3    4.  Every permit holder or other person shall, when
 31  4 requested by the department, make such additional reports as
 31  5 the department deems necessary and proper and shall at the
 31  6 request of the department furnish full and complete
 31  7 information pertaining to any transaction of the permit holder
 31  8 or other person involving the purchase or sale or use of
 31  9 cigarettes or purchase of cigarette stamps.
 31 10    6.  If any distributor, manufacturer, or other person fails
 31 11 or refuses to pay any tax, penalties, or cost of audit
 31 12 hereinafter provided, and it becomes necessary to bring suit
 31 13 or to intervene in any manner for the establishment or
 31 14 collection of said claims, in any judicial proceedings, any
 31 15 report filed in the office of the director by such the
 31 16 distributor, manufacturer, or other person, or the
 31 17 distributor's, manufacturer's, or other person's
 31 18 representative, or a copy thereof, certified to by the
 31 19 director, showing the number of cigarettes sold by such the
 31 20 distributor, or the distributor's representative, the
 31 21 manufacturer, or the other person, upon which such a tax,
 31 22 penalty, or cost of audit has not been paid, or any audit made
 31 23 by the department from the books or records of said the
 31 24 distributor, manufacturer, or other person when signed and
 31 25 sworn to by the agent of the department making the audit as
 31 26 being made from the records of said the distributor,
 31 27 manufacturer, or other person from or to whom such the
 31 28 distributor, manufacturer, or other person has bought,
 31 29 received, or delivered cigarettes, whether from a
 31 30 transportation company or otherwise, such report or audit
 31 31 shall be admissible in evidence in such proceedings and shall
 31 32 be prima facie evidence of the contents thereof; provided,
 31 33 however, that.  However, the incorrectness of said the report
 31 34 or audit may be shown.
 31 35    Sec. 66.  Section 453A.16, Code 1997, is amended to read as
 32  1 follows:
 32  2    453A.16  MANUFACTURER'S PERMIT.
 32  3    The department may, upon application of any manufacturer,
 32  4 issue without charge to such the manufacturer a manufacturer's
 32  5 permit.  Such The application shall contain such information
 32  6 as the director shall prescribe.  The holder of such a
 32  7 manufacturer's permit shall be is authorized to purchase
 32  8 stamps from the department, and to must affix such stamps to
 32  9 individual packages of cigarettes outside of this state, prior
 32 10 to their shipment into the state unless the cigarettes are
 32 11 shipped to an Iowa permitted distributor or an Iowa permitted
 32 12 distributor's agent.
 32 13    Sec. 67.  Section 453A.28, Code 1997, is amended to read as
 32 14 follows:
 32 15    453A.28  ASSESSMENT OF TAX BY DEPARTMENT – INTEREST –
 32 16 PENALTY.
 32 17    If after any audit, examination of records, or other
 32 18 investigation the department finds that any person has sold
 32 19 cigarettes without stamps affixed thereto or that any person
 32 20 responsible for paying the tax has not done so as required by
 32 21 this division, the department shall fix and determine the
 32 22 amount of tax due, and shall assess the tax against the
 32 23 person, together with a penalty as provided in section 421.27.
 32 24 The taxpayer shall pay interest on the tax or additional tax
 32 25 at the rate determined under section 421.7 counting each
 32 26 fraction of a month as an entire month, computed from the date
 32 27 the tax was due.  If any person fails to furnish evidence
 32 28 satisfactory to the director showing purchases of sufficient
 32 29 stamps to stamp unstamped cigarettes purchased by the person,
 32 30 the presumption shall be that the cigarettes were sold without
 32 31 the proper stamps affixed thereto.  Within two years after the
 32 32 return report is filed or within two years after the return
 32 33 report became due, whichever is later, the department shall
 32 34 examine the return report and determine the correct amount of
 32 35 tax.  The period for examination and determination of the
 33  1 correct amount of tax is unlimited in the case of a false or
 33  2 fraudulent report made with the intent to evade tax, or in the
 33  3 case of a failure to file a report, or if a person purchases
 33  4 or is in possession of unstamped cigarettes.
 33  5    Sec. 68.  Section 453A.29, Code 1997, is amended to read as
 33  6 follows:
 33  7    453A.29  NOTICE AND APPEAL.
 33  8    The department shall notify any person assessed pursuant to
 33  9 section 453A.28 by sending a written notice of the
 33 10 determination by mail to the principal place of business of
 33 11 the person as shown on the person's application for permit,
 33 12 and if an application was not filed by the person, to the
 33 13 person's last known address.  A determination by the
 33 14 department of the amount of tax, penalty, and interest due, or
 33 15 the amount of refund for excess tax paid, is final, unless the
 33 16 person aggrieved by the determination appeals to the director
 33 17 for a revision of the determination within sixty days from the
 33 18 postmark date of the notice of determination of tax, penalty,
 33 19 and interest or refund owing or unless the taxpayer contests
 33 20 the determination by paying the tax, interest, and penalty and
 33 21 timely filing a claim for refund.  The director shall grant a
 33 22 hearing and upon the hearing, the director shall determine the
 33 23 correct tax, penalty, and interest or refund due and notify
 33 24 the appellant of the decision by mail.  Judicial review of
 33 25 action of the director may be sought in accordance with the
 33 26 Iowa administrative procedure Act and section 422.29.
 33 27    Sec. 69.  Section 453A.31, Code 1997, is amended by
 33 28 striking the section and inserting in lieu thereof the
 33 29 following:
 33 30    453A.31  CIVIL PENALTY FOR CERTAIN VIOLATIONS.
 33 31    If a permit holder fails to keep any of the records
 33 32 required to be kept by the provisions of this division, or
 33 33 sells cigarettes upon which a tax is required to be paid by
 33 34 this division without at the time having a valid permit, or if
 33 35 a distributor, wholesaler, manufacturer, or distributing agent
 34  1 fails to make reports to the department as required, or makes
 34  2 a false or incomplete report to the department, or if a
 34  3 distributing agent stores unstamped cigarettes in the state or
 34  4 distributes or delivers unstamped cigarettes within this state
 34  5 without at the time of storage or delivery having a valid
 34  6 permit, or if a person purchases or is in possession of
 34  7 unstamped cigarettes, or if a person affected by this division
 34  8 fails or refuses to abide by any of its provisions or the
 34  9 rules adopted under this division, the person is civilly
 34 10 liable to the state for a penalty as follows:
 34 11    1.  For possession of unstamped cigarettes:
 34 12    a.  A two hundred dollar penalty for the first violation if
 34 13 a person is in possession of more than forty but not more than
 34 14 four hundred unstamped cigarettes.
 34 15    b.  A five hundred dollar penalty for the first violation
 34 16 if a person is in possession of more than four hundred but not
 34 17 more than two thousand unstamped cigarettes.
 34 18    c.  A one thousand dollar penalty for the first violation
 34 19 if a person is in possession of more than two thousand
 34 20 unstamped cigarettes.
 34 21    d.  For a second violation within two years of the first
 34 22 violation, the penalty is four hundred dollars if a person is
 34 23 in possession of more than forty but not more than four
 34 24 hundred unstamped cigarettes; one thousand dollars if a person
 34 25 is in possession of more than four hundred but not more than
 34 26 two thousand unstamped cigarettes; and two thousand dollars if
 34 27 a person is in possession of more than two thousand unstamped
 34 28 cigarettes.
 34 29    e.  For a third or subsequent violation within two years of
 34 30 the first violation, the penalty is six hundred dollars if a
 34 31 person is in possession of more than forty but not more than
 34 32 four hundred unstamped cigarettes; one thousand five hundred
 34 33 dollars if a person is in possession of more than four hundred
 34 34 but not more than two thousand unstamped cigarettes; and three
 34 35 thousand dollars if a person is in possession of more than two
 35  1 thousand unstamped cigarettes.
 35  2    2.  For all other violations of this section:
 35  3    a.  A two hundred dollar penalty for the first violation.
 35  4    b.  A five hundred dollar penalty for a second violation
 35  5 within two years of the first violation.
 35  6    c.  A thousand dollar penalty for a third or subsequent
 35  7 violation within two years of the first violation.
 35  8    The penalty imposed under this section shall be assessed
 35  9 and collected pursuant to section 453A.28 and is in addition
 35 10 to the tax, penalty, and interest imposed in that section.
 35 11    Sec. 70.  Section 453A.45, subsections 2, 3, and 4, Code
 35 12 1997, are amended to read as follows:
 35 13    2.  Every person who sells tobacco products to persons
 35 14 other than the ultimate consumer shall render with each sale
 35 15 itemized invoices showing the seller's name and address, the
 35 16 purchaser's name and address, the date of sale, and all prices
 35 17 and discounts.  The person shall preserve legible copies of
 35 18 all such invoices for one year two years from the date of
 35 19 sale.
 35 20    3.  Every retailer and subjobber shall procure itemized
 35 21 invoices of all tobacco products purchased.  The invoices
 35 22 shall show the name and address of the seller and the date of
 35 23 purchase.  The retailer and subjobber shall preserve a legible
 35 24 copy of each such invoice for one year two years from the date
 35 25 of purchase.  Invoices shall be available for inspection by
 35 26 the director or the director's authorized agents or employees
 35 27 at the retailer's or subjobber's place of business.
 35 28    4.  Records of all deliveries or shipments of tobacco
 35 29 products from any public warehouse of first destination in
 35 30 this state which is subject to the provisions of and licensed
 35 31 under chapter 554 shall be kept by the warehouse and be
 35 32 available to the director for inspection.  They shall show the
 35 33 name and address of the consignee, the date, the quantity of
 35 34 tobacco products delivered, and such other information as the
 35 35 commissioner may require.  These records shall be preserved
 36  1 for one year two years from the date of delivery of the
 36  2 tobacco products.
 36  3    Sec. 71.  Section 453A.46, subsection 4, Code 1997, is
 36  4 amended to read as follows:
 36  5    4.  The department shall notify any person assessed
 36  6 pursuant to this section by sending a written notice of the
 36  7 determination by mail to the principal place of business of
 36  8 the person as shown on the person's application for permit,
 36  9 and if an application was not filed by the person, to the
 36 10 person's last known address.  A determination by the
 36 11 department of the amount of tax, penalty, and interest due, or
 36 12 the amount of refund for excess tax paid, is final, unless the
 36 13 person aggrieved by the determination appeals to the director
 36 14 for a revision of the determination within sixty days from the
 36 15 postmark date of the notice of determination of tax, penalty,
 36 16 and interest or refund owing or unless the taxpayer contests
 36 17 the determination by paying the tax, interest, and penalty and
 36 18 timely filing a claim for refund.  The director shall grant a
 36 19 hearing and upon the hearing, the director shall determine the
 36 20 correct tax, penalty, and interest or refund due and notify
 36 21 the appellant of the decision by mail.  Judicial review of
 36 22 action of the director may be sought in accordance with
 36 23 chapter 17A and section 422.29.
 36 24    Sec. 72.  Section 602.8102, subsection 59, Code 1997, is
 36 25 amended by striking the subsection.
 36 26    Sec. 73.  Section 633.272, Code 1997, is amended to read as
 36 27 follows:
 36 28    633.272  PARTIAL INTESTACY.
 36 29    If part but not all of the estate of a decedent is validly
 36 30 disposed of by will, the part not disposed of by will shall be
 36 31 distributed as provided herein for intestate estates.  If the
 36 32 testator left a surviving spouse, and the spouse does not
 36 33 elect to take against the will, the spouse shall receive, in
 36 34 addition to the property given to the spouse by the will, all
 36 35 of the intestate property which shall be subject to the
 37  1 payment of its proportionate share of debts and charges
 37  2 against the estate the amount of intestate property set forth
 37  3 in section 633.211 or 633.212.
 37  4    Sec. 74.  Section 422.90, Code 1997, is repealed.
 37  5    Sec. 75.  Section 450.92, Code 1997, is repealed.
 37  6    Sec. 76.  DIRECTIONS TO CODE EDITOR.  The Iowa Code editor
 37  7 shall transfer sections 427.3 through 427.7 to chapter 426A
 37  8 and change internal references as necessary.
 37  9    Sec. 77.  EFFECTIVE AND APPLICABILITY DATES.
 37 10    1.  Section 6 of this Act, amending section 422.13,
 37 11 subsection 5, applies retroactively to January 1, 1998, for
 37 12 tax years beginning on or after that date.
 37 13    2.  Section 8 of this Act, amending section 422.23,
 37 14 unnumbered paragraph 2, applies retroactively to January 1,
 37 15 1997, for tax years beginning on or after that date.
 37 16    3.  Section 28 of this Act, amending section 422.121, being
 37 17 deemed of immediate importance, takes effect upon enactment
 37 18 and applies retroactively to January 1, 1997, for tax years
 37 19 beginning on or after that date.
 37 20    4.  Sections 36 through 39 and section 75 of this Act,
 37 21 amending chapters 450 and 451, take effect July 1, 1998, for
 37 22 estates of decedents dying on or after that date.
 37 23    5.  This Act, being deemed of immediate importance, takes
 37 24 effect upon enactment.  
 37 25                           EXPLANATION
 37 26    The bill amends various provisions of state tax law.  The
 37 27 amendments that are not just eliminating obsolete provisions
 37 28 are as follows:
 37 29    Code section 421.1 is amended to delete the requirement
 37 30 that the state board of tax review meet six times a year and
 37 31 now provides that the state board meet as necessary.
 37 32    Code section 421.18 is amended to provide that not only
 37 33 public officers need to give the director information to
 37 34 assist in tax administration but employees and local
 37 35 governments need to also provide the information.
 38  1    Code section 421.40 is amended to provide that departments
 38  2 may enter into contracts for goods and services and pay
 38  3 interest on payment terms of less than 60 days.
 38  4    Code section 422.13 is amended to remove the requirement
 38  5 that taxpayers need to get permission to file a composite
 38  6 return and provides that limited liability companies may join
 38  7 the filing of a composite return.
 38  8    Code section 422.16 is amended to provide, that at the
 38  9 discretion of the director, withholding agents need not send
 38 10 wage and tax statements with the annual report if the
 38 11 information is available from other sources such as the
 38 12 internal revenue service or other state or federal agencies.
 38 13    Code sections 422.23 and 602.8102(59), are amended to
 38 14 strike the requirement that provides that personal
 38 15 representatives of an estate can apply to the district court
 38 16 to determine initially whether the estate is subject to Iowa
 38 17 income tax.
 38 18    Code sections 422.25, 422.47(4), 424.10, 429.2(1),
 38 19 450.94(2), 450.94(3), 453A.29, and 453A.46(4) are amended to
 38 20 provide that the 30-or 60-day appeal period, as applicable,
 38 21 commences on the date of the notice.  Presently, the appeal
 38 22 period commences on the postmark date of the notice.
 38 23    Code section 422.25(3) is amended to provide that when a
 38 24 taxpayer has paid 90 percent of the final tax liability by the
 38 25 original due date and files the return sometime in the six-
 38 26 month extended period after the original due date, interest on
 38 27 an overpayment of tax on the return starts to accrue two
 38 28 months after the end of the six-month extended period.
 38 29    Code section 422.33(1) is amended to remove the provision
 38 30 that imposes the Iowa corporate income tax upon a corporation
 38 31 whose legal domicile (place where the corporation was created)
 38 32 is in Iowa and instead provides it on all corporations doing
 38 33 business in Iowa.
 38 34    Code sections 422.33(2) is amended to provide that an Iowa-
 38 35 based corporation whose only activity outside Iowa is the
 39  1 ownership of intangible assets that have acquired a business
 39  2 situs outside Iowa may apportion its income to determine the
 39  3 portion of its income which is subject to Iowa income tax.
 39  4    Code sections 422.42(6), 422.42(18), and 422.45(46) are
 39  5 amended to make the exemption from Iowa sales tax for services
 39  6 performed on tangible property delivered into interstate
 39  7 commerce the same as the exemption from Iowa sales tax on
 39  8 tangible personal property delivered to a point outside of
 39  9 Iowa.
 39 10    Code section 422.45(7) is amended to provide that
 39 11 governmental units, nonprofit educational institutions, and
 39 12 nonprofit private museums have one year instead of six months
 39 13 from final payment to apply for a refund of sales or use tax
 39 14 paid by a contractor on materials used in the performance of a
 39 15 construction contract.
 39 16    Code section 422.47, which relates to the use of sales tax
 39 17 exemption certificates, is amended to provide that an
 39 18 exemption certificate may be used to substantiate the sale of
 39 19 nontaxable items as well as sales made to persons holding a
 39 20 direct pay permit.  Current law only provides for exemption
 39 21 certificates for materials purchased for resale or use in
 39 22 processing.
 39 23    Code section 422.50 is amended to provide that retailers
 39 24 are required to keep records on the gross receipts from the
 39 25 sale of services as well as the sale of tangible personal
 39 26 property.
 39 27    Code section 422.68(4) is amended to allow the department
 39 28 to use new technologies to preserve records as required by
 39 29 law.
 39 30    Code section 422.72(1) is amended to make it unlawful to
 39 31 willfully inspect returns for any reason other than as
 39 32 authorized by the director of revenue and finance.  The
 39 33 penalty is a serious misdemeanor.
 39 34    Code section 422.90 is repealed.  The section stated that
 39 35 the penalty imposed for underpayment of estimated tax is not
 40  1 subject to waiver for reasonable cause.
 40  2    Code section 422.110 is amended to provide that an income
 40  3 tax credit in lieu of a full tax refund is not available for
 40  4 credit relating to casualty loss, transport diversions,
 40  5 pumping credits, blending errors, idle time, power takeoffs,
 40  6 reefer units, and exports by eligible purchasers.  However, a
 40  7 refund remains available if a refund permit is obtained from
 40  8 the department.
 40  9    Code section 422.111 is amended to provide that a refund is
 40 10 only available for undyed special fuel since no tax is imposed
 40 11 on dyed special fuel.
 40 12    Code section 422.121 is amended to specify the method for
 40 13 calculating the livestock production tax credit for cow-calf
 40 14 operations effective beginning with the 1997 tax years.
 40 15    Code section 422B.10(2) is amended to provide that if an
 40 16 overpayment has been made to a local jurisdiction for local
 40 17 option sales tax during the previous fiscal year, the November
 40 18 payment must reflect the adjustment.
 40 19    Code section 422D.3 is amended to move a local income
 40 20 surtax fund from the state treasurer's office to the
 40 21 department of revenue and finance.
 40 22    Code section 427.1(14) is amended to move the sign-up date
 40 23 from July 1 to April 15 for claiming a property tax exemption
 40 24 by war veterans organizations and religious, literary, and
 40 25 charitable societies.  This would allow the taxpayer to appeal
 40 26 the assessment to the board of review prior to its adjournment
 40 27 if the claim is denied.
 40 28    Code section 427.1(24) is amended to provide a February 1
 40 29 deadline for certifying eligibility for the wildlife habitat
 40 30 property tax exemption.  Other property tax credit and
 40 31 exemptions provide specific certification deadlines.
 40 32    Code sections 427.3 through 427.7 are to be transferred to
 40 33 Code chapter 426A by the Iowa Code editor so that all
 40 34 provisions pertaining to the military service property tax
 40 35 exemption appear in the same chapter.
 41  1    Code section 428.1 is amended to provide that the listing
 41  2 contained in section 428.1, subsections 1 through 5, does not
 41  3 encompass all situations where a person is required to list
 41  4 property for the assessor.
 41  5    Code section 450.22 is amended to provide that, in addition
 41  6 to the surviving spouse as already provided in this statute,
 41  7 when the estate does not have a federal estate tax obligation
 41  8 and all property of the estate is held in joint tenancy with
 41  9 the right of survivorship solely by the decedent and a lineal
 41 10 ascendant, child, stepchild, or lineal descendant, or any
 41 11 combination of these individuals, an Iowa inheritance tax
 41 12 return need not be filed.
 41 13    Code section 450.37 is amended to allow the department of
 41 14 revenue and finance to adjust previously accepted, submitted,
 41 15 appraised, or agreed upon values of real property if the new
 41 16 values have been accepted for federal estate tax purposes.
 41 17 Also, the personal representative for the estate may claim a
 41 18 refund of tax if the personal representative for the estate
 41 19 files a claim for refund within six months of the final
 41 20 disposition of any real property valuation matter.
 41 21    Code section 451.12 is amended to provide that a lien for
 41 22 Iowa estate tax could be made on those items listed as
 41 23 exemptions under Code section 450.7 for inheritance tax.
 41 24    Code section 452A.2(11) and (17) are amended to provide
 41 25 that a person need not export fuel exclusively to be
 41 26 considered an exporter and that transmix is taxed as motor
 41 27 vehicle fuel.  Transmix is a product that is used as a buffer
 41 28 between fuel types being transported through a pipeline.
 41 29    Code sections 452A.8, 452A.9, 452A.15, 452A.21, 452A.60,
 41 30 452A.61, 452A.63, 452A.67, 452A.68, 452A.74A, and 452A.86 are
 41 31 amended to provide consistency in the motor vehicle fuel tax
 41 32 by changing the word "report" to "return".  When the motor
 41 33 vehicle fuel tax chapters were amended to change the point of
 41 34 taxation during the 1995 Session of the General Assembly,
 41 35 these sections were not amended.
 42  1    Code section 452A.17(1) is amended to provide that a fuel
 42  2 tax refund is available for machinery and equipment used for
 42  3 nonhighway purposes.
 42  4    Code section 452A.17 is also amended to provide that
 42  5 records need to be kept relating to fuel used in watercraft
 42  6 and further to provide that no refund will be issued for
 42  7 undyed special fuel taken out of the state in the fuel supply
 42  8 tank of a vehicle.
 42  9    Code section 452A.22 is created to require a licensee who
 42 10 collects tax in error from a consumer to either return the tax
 42 11 to the consumer or remit it to the department.
 42 12    Code section 453A.6(3) is amended to list distributors and
 42 13 manufacturers as those who must stamp cigarettes.
 42 14    Code section 453A.6 is also amended by adding two new
 42 15 subsections.  The first new subsection provides that any
 42 16 person who is in possession of unstamped cigarettes shall pay
 42 17 the tax directly to the department.  The second new subsection
 42 18 provides that the tax shall be added to the selling price and
 42 19 collected from the purchasers so that the ultimate consumer
 42 20 bears the burden of the tax.
 42 21    Code section 453A.8(1) is amended to provide that the
 42 22 department is no longer required to sell cigarette stamps in
 42 23 unbroken books of 1,000 stamps.
 42 24    Code section 453A.15 is amended to provide that any person
 42 25 who is not licensed must keep records, file reports, and pay
 42 26 the cigarette tax in the same manner as permit holders.
 42 27    Code section 453A.16 is amended to provide that
 42 28 manufacturers of cigarettes may only ship unstamped cigarettes
 42 29 into the state to licensed distributors or licensed
 42 30 distributors' agents.
 42 31    Code section 453A.28 is amended to provide that the two-
 42 32 year statute of limitations does not apply if a false or
 42 33 fraudulent report is made with the intent to evade tax, if a
 42 34 report is not filed, or if the person is in possession of
 42 35 unstamped cigarettes.  In these instances, the statute of
 43  1 limitations is unlimited.
 43  2    Code section 453A.31 deals with a civil penalty for failure
 43  3 to keep records, selling cigarettes without a valid permit,
 43  4 making a false or incomplete report, or failing to abide with
 43  5 rules of the department.  The present penalty is $50 for each
 43  6 offense, each violation is a separate offense, and the same
 43  7 violation is a separate offense for each day it continues.
 43  8    The amendment to the Code section strikes the $50-a-day
 43  9 penalty in lieu of a three-tiered civil penalty for the above
 43 10 offenses:  $200 for the first offense; $500 for the second
 43 11 offense within two years; $1,000 for the third offense within
 43 12 two years and for subsequent offenses.
 43 13    A second three-tiered penalty for possession of unstamped
 43 14 cigarettes is provided.  This penalty is based on the number
 43 15 of cigarettes in the person's possession.  
 43 16 Number of     1st Violation   2nd Violation   Third
 43 17 Cigarettes    Within 2 Years  Within 2 Years  Violation
 43 18    41-400        $200             $400           $600
 43 19   401-2,000      $500           $1,000         $1,500
 43 20    2,001 or
 43 21      more      $1,000           $2,000         $3,000
 43 22    These penalties are no longer subject to mandatory waiver
 43 23 for reasonable cause.
 43 24    Code section 453A.45(2), (3), and (4) are amended to
 43 25 require persons who sell tobacco products to retain records
 43 26 for two years from the date of sale instead of the present
 43 27 one-year requirement.
 43 28    Code section 633.272 is amended to provide that, under
 43 29 partial intestacy, a surviving spouse is entitled to receive
 43 30 the amount of intestate property as provided in Code section
 43 31 633.211 or 633.212.
 43 32    The bill takes effect upon enactment and some provisions
 43 33 have different applicability date provisions than the
 43 34 effective date.  
 43 35 LSB 3233HV 77
 44  1 mg/sc/14
     
Text: HF02529                           Text: HF02531
Text: HF02500 - HF02599                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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